thebusyfrugalmom.com

Every Tuesday is Finance Day at The Busy Frugal Mom.

Do your finances feel a bit like wading into the deep water and you’re unsure of what rocky terrain lies beneath? Wish you could Get Out of Debt but need some ideas? Here are 50 concrete ways to put your desires into action. Use the links within the list to find more information.

Getting a Plan

1. Tithe. If you’re part of a local church you should be tithing. It will make you more responsible with what’s left. If you’re not a member of a church find a good charity or put aside a saving account for the money until you find a church.
2. Take stock of all your liabilities. Now is the time to scrutinize every penny that you spend. Do you really need all those minutes on your cellphone? Can you drop your cable service level or even your cable service all together? We did this to every single bill we pay. After all was said and done we saved over $200 per month. Some bills we only saved $5 on but it added up very quickly.
3. Track your expenses for 30 days. Keep all of your receipts and log every penny you spend for 30 days. Then analyze where your money is truly going. This will allow you to see why you’re struggling and where you can save extra money.
4. Set a budget. Now that you are well aware of every dollar that leaves your home, set a plan for your money. Failing to plan equals planning to fail.
5. Create a baby emergency fund of $1000 and then cut up remaining credit card. Do this step as fast as possible. Sell some stuff to make it happen now. I put this in the getting a plan section because having an emergency fund is part of planning. Planning now for an emergency can prevent further debt.
6. Christmas is in December. Did you know it’s every December? Figure out what you spent this past Christmas. Was it realistic? If not figure out what is realistic. Decide your budget for next Christmas now and divide it by 12. Start saving now and it won’t surprise you next year. Plan other periodic expenses too.
7. Save for bigger purchases. After saving all of your hard-earned money do you still even need it? Probably not. But if you do then won’t it feel great knowing that you saved for it?
8. Focus, Focus, Focus. You have to focus constantly on your goal. Make notes, remind yourself. Put a sticky on your debit card that says “Is this purchase worth delaying becoming debt free?”
9. Extra cash. Follow your debt reduction plan. Don’t consider it a spendable bonus. If you’re working on a particular debt put the bonus straight towards that debt. It’ll feel great seeing a big drop in your balance and put you that much closer toward your goal.
10. Ignore that raise! Well sort of. Don’t put it into your regular budget. Instead have it directly pay down your extra debt. If you don’t think about it, then you won’t miss it.

Must Know Tidbits

1. Don’t go further into debt. Immediately go to a cash only system. Cut up all but one credit card.
2. Spend less than you earn. I know this should go without saying but if that were true we would not have debt in the first place (me included).
3. How many hours did you have to work to pay for that new toy? If it costs $500 and you only make $10 per hour then you’ll need to work 50 hours to make that purchase. Worse yet if you use a credit card and make minimum payments, you’ll need to work 86 hours to pay for it (based on 18% interest with a minimum payment of 2.5% of the balance).
4. Don’t consolidate your debt. I know it sounds easier to have one smaller payment for all of your debts but it’s not. It’s much easier to snowball your debts when they in smaller portions. Also many of the consolidation companies can hurt your credit.
5. Borrower is servant to the lender. According to Proverbs 22:7, if you borrow money then you become a servant to that lender. Realizing this really made me angry enough to do something about my debt situation. I’m working hard so my lender can earn more interest on my money than I could even think about earning right now!

Quick Start Tips

1. Sell your car! Do you realize how much that is really costing you? I didn’t until I read Dave Ramsey’s “My Total Money Makeover”.
2. Have a yard sale. Seriously, do you need all of that stuff around your house? I know I don’t. Sell it and fast.
3. Sell items on Craigslist or eBay. Pull out some of the more valuable items prior to your yard sale and list them on Craigslist or on eBay. But with the commitment you’ll include it in the yard sale if it doesn’t sell.
4. Move into a smaller space. You’ll need to cost analyze this one. How much will it cost you to move, how much will you save, and how long will to stay? If you come out ahead then this is a great option for you. And you’ll find more stuff to sell since you can’t fit it into your smaller space!
5. Be willing to make sacrifices. Remember, you own things. They do not own you. We had to sell one of our cars and get a “beater” but this was the best move we could have made. It was so empowering not to have a car note hanging over our heads.
6. Increase your income. If your current income just won’t go far enough or pay down your debt fast enough consider a second job. A pizza man, here in my town, says he makes about $100 on a good night. A few nights of this could equal $1000 extra each month. How could that speed up your debt elimination?

Partner Rules 

1. Get on the same page as your partner. If you have a spending partner then you have to be together or it won’t work. They will unintentionally sabotage your efforts. If they are having a hard time seeing the vision, start dream building with them. Ask simple but non-confrontational questions like “What would you do if we had no payments except utilities?” Questions like this helped my husband grasp the vision and now we’re on the same page.
2. Recognize spending tendencies in you and your partner. Do you overspend when you go to a specific store? If so ask your spouse to help you be accountable and only go with a list. Better yet bring along a friend that will challenge you. (This can only be done if you’re working the plan together!!!)
3. Be an example. You can’t change your spouse, only they can do that. You can, however, be an example. Work on your own attitudes and behaviors and let your new self be a shining example. Recognize that your spouse may not grab onto the idea as fast as you.

Working the Plan

1. Pay down your existing debt. Now that you’ve found a few extra dollars. Use it to pay down your debt. Start with the smallest balance first. It will motivate you tremendously to see one of your debts gone!
2. Put any new purchase through the goal test. Does it align? If you spend money on things you don’t care about that means the things that are most important to you get the short end of the stick.
3. Buy an older car. One that you can pay cash for or even barter something from around your house for. We’re going to barter a flat screen TV that we found in the trash for an older van. 
4. Avoid eating out: One person can barely eat at McDonald’s for $4, but you can feed a family of 6 at home for $4. Save dining out for very special occasions. Then it will feel special instead of ordinary.
5. Buy groceries on sale and with coupons. Plan your menus around the sales and coupons. You can save 50% or more on your grocery bill. Check out Coupon Mom & The Grocery Game
6. Practice Creative Entertainment: Want to get together with your friends? Instead of going out and spending a ton of money try staying in for a change. Potlucks or progressive dinners can be a lot of fun. Or eat at home then get together for games and snacks afterwards. We have the most fun getting together and playing games.
7. Free Family Entertainment: Find free things to do in your area. Small children will pick a playground over most anything else when given the choice. Find new playground (as in new to them) for a change of scenary. My boys think it is totally awesome when I surprise them by stopping by a playground in another neighborhood. I’ll devote a post soon to more free family entertainment.
8. Don’t quit when you make a mistake. We all fall off the bandwagon. What determines whether or not you’ll become debt-free is if you get back on or no.
9. Just say NO!!! Quit rationalizing every little purchase. It’s okay to tell yourself, your spouse, and your kids no. Really. It won’t hurt anyone. I remind myself this everytime.
10. Beans and Rice, Rice and Beans. In addition to eating at home, be more frugal with your grocery purchases.
11. CASH IS KING. If you don’t have cash to pay for the item, then you can’t afford to buy it. That means no more payments.
12. Refurbished instead of replace. Learn how to refinish your furniture instead of replacing it. It’s much cheaper and you’ll love the result.
13. Think used. Do you really need that item new? Can you find it used somewhere for less? Try an older vehicle, the second hand store, libraries, thrift stores, and garage sales. You’d be surprised at what you’ll find.
14. Plant a garden. Grow your own tomatoes, beans, carrots, and herbs. Use pots if you don’t have a yard.
15. Exercise. I know, you’re thinking what does excersice have to do with it? Well the more you exercise the less you eat and the less time you have to spend money. Exercise is free – if you pick the right kinds. Take a walk, ride your bike, play ball with your kid. Just get out and have fun.
16. Turn down the heat and turn up the air. During the winter, wear a sweater inside during the day. During the summer wear shorts. It will also make you more tolerant of the outdoor elements. Since marrying my husband I’ve become very intolerant of the heat because he keeps the air on frigid. I’m working on him and he’s doing better.

Long-Term Vision

1. Consult with a financial planner. Find a financial planner that follows or is trained in the system your using. For example, Dave Ramsey lists financial planners on his website. They can be a great resource if you’re unsure how to proceed.
2. Teach your children. Go through this process with them. Teach them what it means to owe others and how it traps you. When my 8 year old wants something I ask I explain to him we’re not buying that because mommy and daddy are trying to save money to pay for his college. He gets that and says okay (for the most part). This is true because if I don’t pay off my debts I can not save for his college. In addition we’re teaching him to manage his own money.

Books, Blogs, Movies, and Other Resources

1. The more you read about finances the more focused you will remain. Find blogs, books, articles, etc. on your subject of interest. Hate to read? Then borrow books on CD for the car or your MP3 player.
2. Read Dave Ramsey. Any of his books are awesome. He’s an in your face, but graceful and compassionate too, kind of guy. He’ll tell you what you need to know and fill you with motivation while he’s at it.
3. Learn the advertisement game. The advertisement agencies know you better than you do. They spend a lot of money to figure out how to get you to part with your money. Learn their game and it will help you to say no easier.
4. Secret History of the Credit Card. Did you know there was one? Watch this PBS documentary. It will help you get mad enough to do something.
5. MaxedOut. I haven’t seen this movie but I understand it exposes the unethical & profit-driven side of the credit card companies. Are you mad enough yet?
6. How to Get Out of Debt, Stay out of Debt and Live Prosperously by Jerroid Mundis. This book will help those with spending issues. It will help you set up a spending system that works with your goals.
7. The Millionaire Next Door by by Thomas J. Stanley and William D. Danko. So you think the guy next door has no money? He drives a beat up car so he must be barely squeaking by. Right? You may be in for a surprise.
8. Your Money Counts by Howard L. Dayton Jr. This book is an excellent overview of the Crown Financial Ministries study. The purpose of this study is to implement biblical principles on money in churches and families.
9. Budgeting 101 Website:  Thousands of Make your own Mix Recipes, Jar & Kitchen Gifts, credit repair, Coupons, Budgeting Articles, Inexpensive Gift Ideas, Gag Gifts, Money Saving Recipes, & Free Debt Reduction Resource!